The government has decided to allocate 10 MMCFD gas from Bitrism field to Sui Southern Gas Company Limited (SSGCL), official sources told Business Recorder. Bitrism field is located in Sanghar District, Sindh province. The field is being operated by Oil and Gas Development Company Limited (OGDCL) as a joint venture with Government Holdings (Pvt) Limited (GHPL) comprising 77.5% share of OGDCL and 22.5% share of GHPL.

According to sources, production profile, submitted by OGDCL, in respect of Bitrism (well 1 & 2) discovery, OGDCL have requested to allocate 10 MMCFD gas from Bitrism discovery to Sui Southern Gas Company Limited (SSGCL) under commercial arrangements.

The Petroleum Division, in accordance with Bitrism Exploration Licence, Petroleum Concession Agreement (PCA) and Pakistan Petroleum (Exploration & Production) Rules, 1986, has approved Declaration of Commerciality (DoC) over Bitrism West-1A discovery effective from September 7, 2016.

In the operational context of the 18th Constitutional amendment, gas discoveries in any province are to be allocated to the respective gas utility company working in the province. Foregoing in view, the Division proposed that up to 10 MMCFD gas from Bitrism West-lA (Well 1 & 2) discovery may be allocated to SSGCL.

Ministry of Industries and Production and Ministry of Finance supported the proposal. However, Finance did not agree with the Petroleum Division''s assumption that there will be no adverse fiscal implication on the part of GoP.

Ministry of Planning, Development and Reforms, has also supported the proposal subject to approval of Field Development Plan (FDP) and grant of Development and Production (D&P) lease.

Copyright Business Recorder, 2018